A party acting in compliance with the express terms of a contract can still fail to meet their obligations under the duty of good faith and fair dealing.
False
True
This statement is correct because the duty of good faith and fair dealing is an implied obligation that requires parties not to take actions that would hinder or undermine the other party's ability to enjoy the anticipated benefits of the contract. Even if a party adheres to the explicit terms, behavior that deliberately frustrates the essence of the agreement or acts in bad faith violates this duty.
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